Kansai electric, a Japanese company, has invested in Iberdrola’s offshore wind project worth 1.3 billion euros.

The company announced on Friday that Japan's Kansai electric power Co had agreed to purchase a 49 percent stake in Iberdrola’s Windanker offshore project in Germany. This agreement expands a partnership between the Spanish renewable energy giant and the Japanese firm.

The wind farm, located in the German portion of the Baltic Sea will have a capacity installed of 315 Megawatts. It is expected to begin operating at the end of 2026.

Kansai has not disclosed the amount it paid for its share. Iberdrola will retain 51% of the project and values it at 1.3 billion euro.

This is Kansai's fifth offshore wind project, bringing the total offshore wind capacity to 3 gigawatts.

Both companies already have a partnership in the British power distributor Electricity North West. Kansai Electric controls a 12% share and Iberdrola holds the remainder.

Iberdrola, in a consortium of two other Japanese companies won a 375-megawatt offshore wind project, located in northern Japan in March. Tokyo is looking to increase its renewable energy output.

BP and JERA, a Japanese power generator, have joined forces this week to create one of the largest offshore wind operators in the world. The move is a result of a Japanese firm teaming up with BP for growth and experience, while foreign firms are looking to gain traction on Japan's growing renewable energy market.

(source: Reuters)